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ERH vs MRCC

ERH
Allspring Utilities and High Income Fund
NEUTRAL
Price
$12.30
Market Cap
$108.7M
Sector
Financial Services
AI Confidence
80%
MRCC
Monroe Capital Corporation
BEARISH
Price
$5.08
Market Cap
$110.1M
Sector
Financial Services
AI Confidence
95%

Valuation

P/E Ratio
ERH
7.24
MRCC
--
Forward P/E
ERH
--
MRCC
18.81
P/B Ratio
ERH
0.95
MRCC
0.66
P/S Ratio
ERH
18.07
MRCC
2.91
EV/EBITDA
ERH
--
MRCC
--

Profitability

Gross Margin
ERH
100.0%
MRCC
100.0%
Operating Margin
ERH
81.36%
MRCC
69.02%
Profit Margin
ERH
250.33%
MRCC
-13.52%
ROE
ERH
13.54%
MRCC
-2.86%
ROA
ERH
2.17%
MRCC
3.98%

Growth

Revenue Growth
ERH
-8.3%
MRCC
-41.8%
Earnings Growth
ERH
-54.2%
MRCC
--

Financial Health

Debt/Equity
ERH
0.26
MRCC
1.15
Current Ratio
ERH
0.04
MRCC
1.64
Quick Ratio
ERH
0.04
MRCC
1.64

Dividends

Dividend Yield
ERH
8.42%
MRCC
15.43%
Payout Ratio
ERH
52.41%
MRCC
1111.11%

AI Verdict

ERH NEUTRAL

ERH presents as a classic value-income play with a stable Piotroski F-Score of 5/9 and a significant discount to its Graham Number ($22.2). While the fund exhibits strong valuation metrics (P/E of 7.24 vs sector average of 38.42) and a healthy dividend yield of 8.42%, it is severely hampered by a sharp contraction in earnings growth (-54.20%). The disconnect between strong long-term price performance and current bearish technical trends suggests a transition period. Overall, the fund is fundamentally stable but lacks a growth catalyst.

Strengths
Deep value valuation with P/B of 0.95 and P/E of 7.24
Strong dividend profile with 8.42% yield and sustainable 52.41% payout ratio
Low leverage with a Debt/Equity ratio of 0.26
Risks
Severe earnings deterioration (-54.20% YoY)
Negative revenue growth (-8.30% YoY)
Bearish technical trend (0/100 score)
MRCC BEARISH

MRCC exhibits severe financial distress, highlighted by a weak Piotroski F-Score of 2/9 and a catastrophic dividend payout ratio of 1111.11%. While the stock trades at a significant discount to book value (P/B 0.66), this is a classic value trap given the negative ROE (-2.86%) and a massive YoY revenue decline of 41.80%. The combination of negative profit margins and a 0/100 technical trend suggests a continuing downward trajectory with high risk of dividend cuts.

Strengths
Trading at a significant discount to book value (P/B 0.66)
Positive Return on Assets (ROA 3.98%) despite negative ROE
High nominal dividend yield (15.43%) for high-risk income seekers
Risks
Mathematically unsustainable dividend payout ratio (1111.11%)
Severe revenue contraction (-41.80% YoY)
Weak financial health as evidenced by Piotroski F-Score of 2/9

Compare Another Pair

ERH vs MRCC: Head-to-Head Comparison

This page compares Allspring Utilities and High Income Fund (ERH) and Monroe Capital Corporation (MRCC) across key fundamental metrics including valuation ratios, profitability margins, growth rates, financial health indicators, and dividend metrics. Each metric highlights the better-performing stock so you can quickly identify relative strengths and weaknesses.

Our AI engine independently analyzes each company's financials, competitive position, and market conditions to produce a verdict (Bullish, Neutral, or Bearish) along with key strengths and risks. Use this comparison alongside your own research to make informed investment decisions.

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